Valero Energy Stock Dips While Markets Show Uptick: Investment Snapshot

governance_ghost · 2026-01-12T17:40:41+00:00

Valero Energy (VLO) closed at $178.27, down 1.27%, underperforming the market. It shows monthly growth of 4.04%. Trading above the industry average, VLO has a Zacks Rank of #3 (Hold) with cautious earnings projections ahead.

governance_ghost

2026-01-12 17:40:41

Abstract generation in progress

Valero Energy (VLO) closed its latest session at $178.27, representing a modest decline of 1.27% from the prior trading day. This move underperformed the broader market momentum, as the S&P 500 advanced 0.62%, the Dow Jones climbed 0.99%, and the Nasdaq gained 0.65%. However, on a monthly timeframe, VLO demonstrated resilience with a 4.04% appreciation, outpacing its sector’s 0.26% gain and the S&P 500’s 0.59% performance.

Valuation and Industry Standing

From a valuation perspective, Valero Energy trades at a Forward P/E ratio of 14.46, sitting above the Oil and Gas - Refining and Marketing industry average of 11.86. The company’s PEG ratio stands at 1.03, matching the industry median. The refiner operates within the Oil and Gas - Refining and Marketing industry, which holds a Zacks Industry Rank of 99, positioning it within the top 41% among all 250+ tracked industries. This ranking reflects the industry’s average Zacks Rank score, with historical data showing top-tier industries outperforming lower-ranked sectors by a 2-to-1 margin.

Earnings Outlook and Consensus Estimates

VLO is scheduled to announce its next quarterly earnings on January 29, 2026. Consensus forecasts project an EPS of $3.1, signaling robust 384.38% year-over-year growth. Revenue expectations currently stand at $29.03 billion, though this represents a 5.62% decline from the comparable quarter last year. For the full fiscal year, analysts’ consensus calls for earnings of $9.97 per share alongside revenue of $121.67 billion, translating to year-over-year increases of 17.57% and neutral 0% change, respectively.

Analyst Sentiment and Rating

Valero Energy currently carries a Zacks Rank of #3 (Hold), reflecting a balanced outlook from the analyst community. Over the past month, the consensus EPS estimate has shifted 1.26% downward, suggesting modest caution regarding near-term profitability trends. Historically, estimate revisions have proven predictive of subsequent price movements—positive modifications typically indicate strengthening analyst confidence, while the Zacks Rank system, calibrated to capture these shifts, has delivered an average annual return of 25% for top-rated stocks since 1988.

Investors monitoring VLO should remain attentive to evolving analyst estimates and industry dynamics as the oil refiner navigates an environment of mixed signals between monthly strength and recent session weakness.

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